JOHANNESBURG OFFICE GROUND FLOOR, KREDIT HOUSE, 15 PHILLIPS STR, RANDBURG, 2125 | P O BOX 3044, RANDBURG, 2125 TEL: (011) 326-2325 FAX: (011) 886-1721 PORT ELIZABETH OFFICE 57 FIFE AVENUE, ROWALLAN PARK, PORT ELIZABETH, 6025 TEL: (041) 371-5298 FAX: (041) 371-5151 WEBSITE: WWW.WHOOWNSWHOM.CO.ZA REG NO: 1986/003014/07 Essential Business Information RESEARCH REPORT on Air Transport SICCODE: 73000 Report Date: March 2008 Compiled By: Amanda van der Westhuizen [email protected] DIRECTORS: R MCGREGOR (CHAIRMAN), I JONES (KREDITINFORM), M MPHATSOE (SHANDUKA) A MCGREGOR (MANAGING) Air Transport SICCODE: 73000 Report Index INTRODUCTION.................................................................................................................................................. 4 DESCRIPTION OF THE INDUSTRY .................................................................................................................. 5 ¾ Commercial Air Transport ............................................................................................................................ 5 ¾ General Aviation Sector................................................................................................................................ 6 ¾ Military Aviation........................................................................................................................................... 6 ¾ Routes ........................................................................................................................................................... 6 South African commercial airlines and routes......................................................................................... 7 ¾ Airlines.......................................................................................................................................................... 8 ¾ Airports ......................................................................................................................................................... 9 South African Main Airport Statistics ................................................................................................... 10 ¾ Economic Deregulation Of Commercial Air Transport ..............................................................................11 ¾ Alliances and Partnerships .......................................................................................................................... 12 ¾ Frequent Flyer Programs and Other Loyalty Schemes................................................................................ 14 ¾ Leasing........................................................................................................................................................ 15 ¾ Assets and Cost Structure............................................................................................................................ 15 ¾ Safety .......................................................................................................................................................... 17 STATE OF THE INDUSTRY.............................................................................................................................. 17 ¾ Local / Regional.......................................................................................................................................... 17 ¾ International Market.................................................................................................................................... 20 ¾ Regulations and Standards .......................................................................................................................... 26 ¾ Black Economic Empowerment.................................................................................................................. 27 SIZE OF INDUSTRY .......................................................................................................................................... 28 CORPORATE ACTIONS .................................................................................................................................... 32 INFLUENCING FACTORS ................................................................................................................................ 32 ¾ Economic Environment............................................................................................................................... 32 ¾ Information Technology.............................................................................................................................. 34 ¾ Labour resources......................................................................................................................................... 34 ¾ Maturity of the Industry .............................................................................................................................. 34 ¾ Cyclicality................................................................................................................................................... 35 ¾ Key Success Factors.................................................................................................................................... 35 ¾ Key Risks.................................................................................................................................................... 36 CONTINENTAL PRESENCE AND PLANS...................................................................................................... 37 SUBSIDIARY INDUSTRIES.............................................................................................................................. 37 COMPETITION ................................................................................................................................................... 38 ¾ Barriers to Entry.......................................................................................................................................... 40 PROSPECTS AND FUTURE OUTLOOK.......................................................................................................... 40 ¾ Key Opportunities....................................................................................................................................... 41 ¾ Key Risks.................................................................................................................................................... 42 INDUSTRY ASSOCIATIONS ............................................................................................................................ 42 REFERENCES..................................................................................................................................................... 44 ¾ Publications................................................................................................................................................. 44 ¾ Websites:..................................................................................................................................................... 44 ADDENDUMS 1.................................................................................................................................................. 51 ¾ International Airlines with Scheduled Services from South African Airports ............................................ 51 ADDENDUM 2.................................................................................................................................................... 53 ¾ South African Airports................................................................................................................................ 53 ADDENDUM 3.................................................................................................................................................... 55 ¾ The Three Largest Airline Alliances........................................................................................................... 55 ADDENDUM 4.................................................................................................................................................... 56 ¾ Top 100 Airlines by Number of Flights for week starting 11 February 2008............................................. 56 - 2 - © Copyright Who Owns Whom (Pty) Ltd Air Transport SICCODE: 73000 ADDENDUM 5.................................................................................................................................................... 58 ¾ Top 100 Airports by Seat Capacity Available on International Departing Flights for week starting 11 February 2008....................................................................................................................................................... 58 ADDENDUM 6.................................................................................................................................................... 60 ¾ International Freight Traffic Monthly Rating ............................................................................................. 60 ADDENDUM 7.................................................................................................................................................... 61 ¾ IATA Member Airlines............................................................................................................................... 61 ADDENDUM 8...................................................................................................................................................